Since housing crisis, foreclosed homes have boomed. But who stands to gain?

New Zillow report looks home recovery and effects
Posted at 9:42 PM, Jul 12, 2016
and last updated 2016-07-12 23:42:47-04

Denver homes that were foreclosed during the housing crisis have gained almost twice as much value as other homes, according to a new Zillow report.

The new analysis shows how the housing crisis and recovery is contributing to wealth inequality.

When home values took a dive in 2007, millions of homeowners had to abandon their initial investment, missing the opportunity to gain equity as home values recovered.

In the Denver metro area, foreclosed homes have risen 75.1 percent from their lowest point, while all homes have risen 62.2 percent. 

Broken down in terms of value, 51.7 percent of homes that were foreclosed on were in the least valuable third of homes, while 13.7 percent of homes that were foreclosed on were in the most valuable third.

Unfortunately, the previous homeowners are missing out on that recovery — instead, investors in many cases are the ones who stand to gain from the boom.